This article addresses the impact of the fall of the Iron Curtain on migration and migration policy in Austria. The introduction explains Austria's reasoning for prioritizing trade over migration policy relative to the Central and Eastern European countries after the fall of the Iron Curtain. This decision was a paradigm shift, abandoning the guest worker model of migration and introducing immigration legislation with family migration as a core element. The legislative reforms brought about changes in all areas of migration governance. Despite the restrictive policy stance toward migration, in-migration gained momentum to the extent that, by 2022, Austria had one of the highest shares of migrants in its population in the European Union. As the official understanding of Austria is to be an immigration country by chance rather than by choice, it has consequently been unable to develop the necessary instruments to promote innovation and economic growth with the help of migrants. Instead, restrictive policies that guide the settlement and integration of migrants in general, and of asylum seekers in particular, may jeopardize social cohesion and the sustainability of economic growth.